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From the Archive:

When should WIP and mineral-rights issues be checked?

How do re-entry, resumption, recompletion, and zonal abandonment differ for filing?

What if required drill cuttings cannot be collected?

Regulatory Intelligence 

Can a well licence be cancelled if the rig skids or the surface location changes?

Category:

Well Licensing

Research Basis

Archive Period

2015-2025

Records Reviewed
71
Primary Topics
D056; well licence; surface location change; skid rig; conductor casing; 150 m; amendment
Current Reference
AER Directive 056; AER Manual 012; Oil and Gas Conservation Rules

Common Question

Can a well licence be cancelled if the rig skids or the surface location changes?

Archive Findings

Historical records indicate that the answer depends on whether the well is considered to exist. The correspondence listed practical triggers: 150 m depth, hydrocarbons encountered, or casing set, including conductor casing.

If any trigger applies, the existing licence may need to be retained rather than cancelled and replaced.

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Engineering Insight

Before advising cancellation or a new licence, confirm exactly what happened at surface and downhole. A skid or surface-location change after work starts may need an amendment path.

Current Guidance

Use Directive 056 and Manual 012 for well licence amendment or cancellation procedures. Check OGCR requirements for work on wells.

Related Regulatory Insights

Historical newsletter insights that reference the same directive, manual, rule or regulatory requirement.

Mar 31, 2026

AER Industry Levy, Orphan Fund Levy and Directive 056 Updates

This issue covers AER industry levy and orphan fund levy updates, revisions to Directive 056 and Manual 012 for carbon dioxide and hydrogen pipelines, licence-transfer security-estimator changes, and related royalty-administration items. It is a strong compliance update for operators managing annual cost and licensing obligations.

Dec 31, 2023

Directive 023, Directive 056 and Oil Sands Application Updates

This issue covers Directive 023 changes, rescission of Directive 026, Directive 056 and Directive 008 updates, drilling and completion cost submissions, and Saskatchewan and BC items.

Jan 31, 2026

AERH2S Model and Site-Specific Risk Assessment Updates

This newsletter highlights the transition to AERH2S for Directive 056 applications, new site-specific risk assessment checklist expectations, and related licensing considerations. It should be used as a well-licensing and H2S resource for operators preparing applications that require release-rate or emergency-planning support.

Feb 28, 2023

Orphan Fund Levy, Closure Nominations and Directive Updates

This issue summarizes orphan fund levy information, administration levy items, closure nominations, Directive 007 and Manual 011 geothermal updates, Directive 065, unpaid municipal taxes, and Directive 056/Manual 012 updates.

Dec 31, 2024

Directive 056 and Liability Management Framework Updates

This issue covers liability-management directive updates, Directive 056, Directive 089, Directive 090, Manual 012 changes related to brine, geothermal, and mineral development, and BC disposal-dashboard information. It is a strong well-licensing and emerging-resource update for operators planning new applications.

May 31, 2024

Directive 056, H2S and Pipeline Application Updates

This issue summarizes Directive 056, Manual 012, H2S, Directive 059, EPEA pipeline application conditions, OneStop, Directive 011 liabilities, ST98, and facility life-cycle topics.

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